BILL NUMBER: SB 2060	CHAPTERED  09/27/00

	CHAPTER   773
	FILED WITH SECRETARY OF STATE   SEPTEMBER 27, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 26, 2000
	PASSED THE SENATE   AUGUST 30, 2000
	PASSED THE ASSEMBLY   AUGUST 28, 2000
	AMENDED IN ASSEMBLY   AUGUST 25, 2000
	AMENDED IN ASSEMBLY   AUGUST 9, 2000
	AMENDED IN SENATE   APRIL 13, 2000

INTRODUCED BY   Senator Speier

                        FEBRUARY 25, 2000

   An act to amend Section 11713.1 of, and to amend, repeal, and add
Section 11614 of, the Vehicle Code, relating to vehicles.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 2060, Speier.  Vehicles:  dealers:  licenses.
   (1) Existing law makes it unlawful for a vehicle dealer, as
defined, to, among other things, fail to include in a newspaper
advertisement of a vehicle for sale that certain charges will be
added to the advertised total price at the time of sale.
   This bill would expand this prohibition to include advertisements
in magazines, direct mail publications, circulars, or handbills, and
advertisements on any web page of a lessor-retailer's or dealer's
Internet web site, as defined, that displays the price of a vehicle
offered for sale.  The bill would thus impose a state-mandated local
program by expanding the definition of an existing crime.  These
provisions would become operative on July 1, 2001.
   (2) The bill would incorporate changes in Section 11713.1 of the
Vehicle Code proposed by this bill and AB 1912 to be operative only
if both bills are enacted and this bill is enacted last.
  (3) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state.  Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 11614 of the Vehicle Code is amended to read:
   11614.  No lessor-retailer licensed under this chapter shall do
any of the following in connection with any activity for which this
license is required:
   (a) Make or disseminate, or cause to be made or disseminated,
before the public in this state, in any newspaper or other
publication, or any advertising device, or by oral representation, or
in any other manner or means whatever, any statement that is untrue
or misleading and that is known, or which by the exercise of
reasonable care should be known, to be untrue or misleading; or make
or disseminate, or cause to be made or disseminated, any statement as
part of a plan or scheme with the intent not to sell any vehicle, or
service so advertised, at the price stated therein, or as so
advertised.
   (b) Advertise, or offer for sale in any manner, any vehicle not
actually for sale at the premises of the lessor-retailer or available
within a reasonable time to the lessor-retailer at the time of the
advertisement or offer.
   (c) Fail within 48 hours to give, in writing, notification to
withdraw any advertisement of a vehicle that has been sold or
withdrawn from sale.
   (d) Advertise any specific vehicle for sale without identifying
the vehicle by either its vehicle identification number or license
number.
   (e) Advertise the total price of a vehicle without including all
costs to the purchaser at the time of delivery at the lessor-retailer'
s premises, except sales tax, vehicle registration fees, finance
charges, certificate of compliance or noncompliance fees not
exceeding thirty-five dollars ($35) pursuant to any statute, and any
dealer documentary preparation charge.  The dealer documentary charge
shall not exceed thirty-five dollars ($35).
   (f) Fail to disclose, in the newspaper display advertisement of a
vehicle for sale, that there will be added to the advertised total
price, at the time of sale, charges for sales tax, vehicle
registration fees, the fee charged by the state for the issuance of
any certificate of compliance or noncompliance pursuant to any
statute, finance charges, or any dealer documentary preparation
charge.
   For purposes of this subdivision, "newspaper display advertisement"
means any advertisement in a newspaper that is two or more newspaper
columns in width or one newspaper column in width and more than
seven inches in length.
   (g) Advertise or otherwise represent, or knowingly allow to be
advertised or represented on the lessor-retailer's behalf or at the
lessor-retailer's place of business, that no downpayment is required
in connection with the sale of a vehicle when a downpayment is in
fact required and the buyer is advised or induced to finance the
downpayment by a loan in addition to any other loan financing the
remainder of the purchase price of the vehicle.
   (h) Refuse to sell a vehicle to any person at the advertised total
price, exclusive of sales tax, vehicle registration fees, finance
charges, certificate of compliance or noncompliance pursuant to any
statute, and any dealer documentary preparation charge, which charges
shall not exceed thirty-five dollars ($35) for the documentary
preparation charge and thirty-five dollars ($35) for the certificate
of compliance or noncompliance pursuant to any statute, while the
vehicle remains unsold or unleased, unless the advertisement states
the advertised total price is good only for a specified time and the
time has elapsed.
   (i) Engage in the business for which the licensee is licensed
without having in force and effect a bond required by Section 11612.

   (j) Engage in the business for which the lessor-retailer is
licensed without at all times maintaining a principal place of
business and any branch office location required by this chapter.
   (k) Permit the use of the lessor-retailer license, supplies, or
books by any other person for the purpose of permitting that person
to engage in the sale of vehicles required to be registered under
this code, or to permit the use of the lessor-retailer license,
supplies, or books to operate a branch office location to be used by
any other person, if, in either situation, the licensee has no
financial or equitable interest or investment in the vehicles sold
by, or the business of, or branch office location used by, the
person, or has no interest or investment other than commissions,
compensations, fees, or any other thing of value received for the use
of the lessor-retailer license, supplies, or books to engage in the
sale of vehicles.
   (l) Violate any provision of Article 10 (commencing with Section
28050) of Chapter 5 of Division 12.
   (m) Represent the dealer documentary preparation charge, or
certificate of compliance or noncompliance fee, as a governmental
fee.
   (n) Advertise free merchandise, gifts, or services provided by a
lessor-retailer contingent on the purchase of a vehicle.  "Free"
includes merchandise or services offered for sale at a price less
than the lessor-retailer's cost of the merchandise or services.
   (o) Advertise vehicles and related goods or services with the
intent not to supply reasonably expectable demand, unless the
advertisement discloses a limitation of quantity.
   (p) Use the term "rebate" or similar words such as "cash back" in
advertising the sale of a vehicle.
   (q) Require a person to pay a higher price for a vehicle and
related goods or services for receiving advertised credit terms than
the cash price the same person would have to pay to purchase the same
vehicle and related goods or services.  For the purpose of this
subdivision, "cash price" has the meaning as defined in subdivision
(e) of Section 2981 of the Civil Code.
   (r) Misrepresent the authority of a representative or agent to
negotiate the final terms of a transaction.
   (s) Violate any law prohibiting bait and switch advertising,
including, but not limited to, the guides against bait advertising
set forth in Part 238 of Title 16 of the Code of Federal Regulations,
as those regulations read on January 1, 1988.
   (t) Make any untrue or misleading statement indicating that a
vehicle is equipped with all the factory installed optional equipment
the manufacturer offers, including, but not limited to, a false
statement that a vehicle is "fully factory equipped."
   (u) Advertise any underselling claim, such as "we have the lowest
prices" or "we will beat any dealer's price," unless the
lessor-retailer has conducted a recent survey showing that the
lessor-retailer sells its vehicles at lower prices than any other
licensee in its trade area and maintains records to adequately
substantiate the claim.  The substantiating records shall be made
available to the department upon request.
   (v) To display or offer for sale any used vehicle unless there is
affixed to the vehicle the Federal Trade Commission's Buyer's Guide
as required by Part 455 of Title 16 of the Code of Federal
Regulations.
   (w) This section shall remain in effect only until July 1, 2001,
and as of that date is repealed, unless a later enacted statute that
is enacted before July 1, 2001, deletes or extends that date.
  SEC. 2.  Section 11614 is added to the Vehicle Code, to read:
   11614.  No lessor-retailer licensed under this chapter may do any
of the following in connection with any activity for which this
license is required:
   (a) Make or disseminate, or cause to be made or disseminated,
before the public in this state, in any newspaper or other
publication, or any advertising device, or by oral representation, or
in any other manner or means whatever, any statement that is untrue
or misleading and that is known, or which by the exercise of
reasonable care should be known, to be untrue or misleading; or make
or disseminate, or cause to be made or disseminated, any statement as
part of a plan or scheme with the intent not to sell any vehicle, or
service so advertised, at the price stated therein, or as so
advertised.
   (b) Advertise, or offer for sale in any manner, any vehicle not
actually for sale at the premises of the lessor-retailer or available
within a reasonable time to the lessor-retailer at the time of the
advertisement or offer.
   (c) Fail within 48 hours to give, in writing, notification to
withdraw any advertisement of a vehicle that has been sold or
withdrawn from sale.
   (d) Advertise any specific vehicle for sale without identifying
the vehicle by either its vehicle identification number or license
number.
   (e) Advertise the total price of a vehicle without including all
costs to the purchaser at the time of delivery at the lessor-retailer'
s premises, except sales tax, vehicle registration fees, finance
charges, certificate of compliance or noncompliance fees not
exceeding thirty-five dollars ($35) pursuant to any statute, and any
dealer documentary preparation charge.  The dealer documentary charge
shall not exceed thirty-five dollars ($35).
   (f) (1) Fail to disclose, in an advertisement of a vehicle for
sale, that there will be added to the advertised total price, at the
time of sale, charges for sales tax, vehicle registration fees, the
fee charged by the state for the issuance of any certificate of
compliance or noncompliance pursuant to any statute, finance charges,
or any dealer documentary preparation charge.
   (2) For purposes of paragraph (1), "advertisement" means any
advertisement in a newspaper, magazine, direct mail publication, or
handbill that is two or more columns in width or one column in width
and more than seven inches in length, or on any web page of a
lessor-retailer's web site that displays the price of a vehicle
offered for sale on the Internet, as that term is defined in
paragraph (6) of subdivision (e) of Section 17538 of the Business and
Professions Code.
   (g) Advertise or otherwise represent, or knowingly allow to be
advertised or represented on the lessor-retailer's behalf or at the
lessor-retailer's place of business, that no downpayment is required
in connection with the sale of a vehicle when a downpayment is in
fact required and the buyer is advised or induced to finance the
downpayment by a loan in addition to any other loan financing the
remainder of the purchase price of the vehicle.
   (h) Refuse to sell a vehicle to any person at the advertised total
price, exclusive of sales tax, vehicle registration fees, finance
charges, certificate of compliance or noncompliance pursuant to any
statute, and any dealer documentary preparation charge, which charges
shall not exceed thirty-five dollars ($35) for the documentary
preparation charge and thirty-five dollars ($35) for the certificate
of compliance or noncompliance pursuant to any statute, while the
vehicle remains unsold or unleased, unless the advertisement states
the advertised total price is good only for a specified time and the
time has elapsed.
   (i) Engage in the business for which the licensee is licensed
without having in force and effect a bond required by Section 11612.

   (j) Engage in the business for which the lessor-retailer is
licensed without at all times maintaining a principal place of
business and any branch office location required by this chapter.
   (k) Permit the use of the lessor-retailer license, supplies, or
books by any other person for the purpose of permitting that person
to engage in the sale of vehicles required to be registered under
this code, or to permit the use of the lessor-retailer license,
supplies, or books to operate a branch office location to be used by
any other person, if, in either situation, the licensee has no
financial or equitable interest or investment in the vehicles sold
by, or the business of, or branch office location used by, the
person, or has no interest or investment other than commissions,
compensations, fees, or any other thing of value received for the use
of the lessor-retailer license, supplies, or books to engage in the
sale of vehicles.
   (l) Violate any provision of Article 10 (commencing with Section
28050) of Chapter 5 of Division 12.
   (m) Represent the dealer documentary preparation charge, or
certificate of compliance or noncompliance fee, as a governmental
fee.
   (n) Advertise free merchandise, gifts, or services provided by a
lessor-retailer contingent on the purchase of a vehicle.  "Free"
includes merchandise or services offered for sale at a price less
than the lessor-retailer's cost of the merchandise or services.
   (o) Advertise vehicles and related goods or services with the
intent not to supply reasonably expectable demand, unless the
advertisement discloses a limitation of quantity.
   (p) Use the term "rebate" or similar words such as "cash back" in
advertising the sale of a vehicle.
   (q) Require a person to pay a higher price for a vehicle and
related goods or services for receiving advertised credit terms than
the cash price the same person would have to pay to purchase the same
vehicle and related goods or services.  For the purpose of this
subdivision, "cash price" has the meaning as defined in subdivision
(e) of Section 2981 of the Civil Code.
   (r) Misrepresent the authority of a representative or agent to
negotiate the final terms of a transaction.
   (s) Violate any law prohibiting bait and switch advertising,
including, but not limited to, the guides against bait advertising
set forth in Part 238 of Title 16 of the Code of Federal Regulations,
as those regulations read on January 1, 1988.
   (t) Make any untrue or misleading statement indicating that a
vehicle is equipped with all the factory installed optional equipment
the manufacturer offers, including, but not limited to, a false
statement that a vehicle is "fully factory equipped."
   (u) Advertise any underselling claim, such as "we have the lowest
prices" or "we will beat any dealer's price," unless the
lessor-retailer has conducted a recent survey showing that the
lessor-retailer sells its vehicles at lower prices than any other
licensee in its trade area and maintains records to adequately
substantiate the claim.  The substantiating records shall be made
available to the department upon request.
   (v) To display or offer for sale any used vehicle unless there is
affixed to the vehicle the Federal Trade Commission's Buyer's Guide
as required by Part 455 of Title 16 of the Code of Federal
Regulations.
   (w) This section shall become operative on July 1, 2001.
  SEC. 3.  Section 11713.1 of the Vehicle Code is amended to read:
   11713.1.  It is a violation of this code for the holder of any
dealer's license issued under this article to do any of the
following:
   (a) Advertise any specific vehicle for sale without identifying
the vehicle by either its vehicle identification number or license
number.
   (b) Advertise the total price of a vehicle without including all
costs to the purchaser at time of sale, except taxes, vehicle
registration fees, emission testing fees not exceeding fifty dollars
($50), actual fees charged for certificates pursuant to Section 44060
of the Health and Safety Code, finance charges, and any dealer
document preparation charge.  The dealer document preparation charge
shall not exceed forty-five dollars ($45).
   (c) (1) Exclude from an advertisement of a vehicle for sale that
there will be added to the advertised total price at the time of
sale, charges for sales tax, vehicle registration fees, the fee
charged by the state for the issuance of any certificate of
compliance or noncompliance pursuant to any statute, finance charges,
and any dealer document preparation charge.
   (2) For purposes of paragraph (1), "advertisement" means any
advertisement in a newspaper, magazine, direct mail publication, or
handbill that is two or more columns in width or one column in width
and more than seven inches in length, or on any web page of a dealer'
s web site that displays the price of a vehicle offered for sale on
the Internet, as that term is defined in paragraph (6) of subdivision
(e) of Section 17538 of the Business and Professions Code.
   (d) Represent the dealer document preparation charge or
certificate of compliance or noncompliance fee, as a governmental
fee.
   (e) Fail to sell a vehicle to any person at the advertised total
price, exclusive of taxes, vehicle registration fees, the fee charged
by the state for the issuance of any certificate of compliance or
noncompliance pursuant to any statute, finance charges, mobilehome
escrow fees, the amount of any city, county, or city and county
imposed fee or tax for a mobilehome, and any dealer document
preparation charge, which charges shall not exceed forty-five dollars
($45) for the document preparation charge and not to exceed fifty
dollars ($50) for emission testing plus the actual fees charged for
certificates pursuant to Section 44060 of the Health and Safety Code,
while the vehicle remains unsold, unless the advertisement states
the advertised total price is good only for a specified time and the
time has elapsed.
   (f) (1) Advertise for sale, sell, or purchase for resale any new
vehicle of a line-make for which the dealer does not hold a
franchise.
   (2) This subdivision does not apply to any transaction involving
any of the following:
   (A) A mobilehome.
   (B) A recreational vehicle as defined in Section 18010 of the
Health and Safety Code.
   (C) A commercial coach, as defined in Section 18001.8 of the
Health and Safety Code.
   (D) An off-highway motor vehicle subject to identification as
defined in Section 38012.
   (E) A manufactured home.
   (F) A new vehicle that will be substantially altered or modified
by a converter prior to resale.
   (G) A commercial vehicle with a gross vehicle weight rating of
more than 10,000 pounds.
   (H) A vehicle purchased for export and exported outside the
territorial limits of the United States without being registered with
the department.
   (g) Sell a park trailer, as specified in subdivision (b) of
Section 18010 of the Health and Safety Code, without disclosing in
writing to the purchaser that a park trailer is required to be moved
by a transporter or a licensed manufacturer or dealer under a permit
issued by the Department of Transportation or a local authority with
respect to highways under their respective jurisdictions.
   (h) Advertise free merchandise, gifts, or services provided by a
dealer contingent on the purchase of a vehicle.  The term "free"
includes merchandise or services offered for sale at a price less
than the seller's cost of the merchandise or services.
   (i) Advertise vehicles, and related goods or services, at a
specified dealer price, with the intent not to supply reasonably
expectable demand, unless the advertisement discloses the number of
vehicles in stock at the advertised price.  In addition, whether or
not there are sufficient vehicles in stock to supply a reasonably
expectable demand, when phrases such as "starting at," "from,"
"beginning as low as," or words of similar import are used in
reference to an advertised price, the advertisement shall disclose
the number of vehicles available at that advertised price.
   For purposes of this subdivision, in any newspaper advertisement
for a vehicle that is two model years old or newer, the actual phrase
that states the number of vehicles in stock at the advertised price
shall be (1) printed in a type size that is at least equal to
one-quarter of the type size, and in the same style and color of
type, used for the advertised price, however, in no case shall the
phrase be printed in less than 8-point type size, and (2) be
disclosed immediately above, below, or beside the advertised price
without any intervening words, pictures, marks, or symbols.
   The disclosure required by this subdivision is in addition to any
other disclosure required by this code or any regulation regarding
identifying vehicles advertised for sale.
   (j) Use the term "rebate" or similar words such as "cash back" in
advertising the sale of a vehicle unless the rebate is expressed in a
specific dollar amount and is in fact a rebate offered by the
vehicle manufacturer or distributor directly to the retail purchaser
of the vehicle or to the assignee of the retail purchaser.
   (k) Require a person to pay a higher price for a vehicle and
related goods or services for receiving advertised credit terms than
the cash price the same person would have to pay to purchase the same
vehicle and related goods or services.  For the purpose of this
subdivision, "cash price" has the meaning as defined in subdivision
(e) of Section 2981 of the Civil Code.
   (l) Advertise a guaranteed trade-in allowance unless the guarantee
is provided by the manufacturer or distributor.
   (m) Misrepresent the authority of a salesperson, representative,
or agent to negotiate the final terms of a transaction.
   (n) (1) Use the terms  "invoice," "dealer's invoice," "wholesale
price," or similar terms that refer to a dealer's cost for a vehicle
in an advertisement for the sale of a vehicle or advertise that the
selling price of a vehicle is above, below, or at either of the
following:
   (A) The manufacturer's or distributor's invoice price to a dealer.

   (B) A dealer's cost.
   (2) This subdivision does not apply to either of the following:
   (A) Any communication occurring during face-to-face negotiations
for the purchase of a specific vehicle if the prospective purchaser
initiates a discussion of the vehicle's invoice price or the dealer's
cost for that vehicle.
   (B) Any communication between a dealer and a prospective
commercial purchaser that is not disseminated to the general public.
For purposes of this subparagraph, a "commercial purchaser" means a
dealer, lessor, lessor-retailer, manufacturer, remanufacturer,
distributor, financial institution, governmental entity, or person
who purchases 10 or more vehicles during a year.
   (o) Violate any law prohibiting bait and switch advertising,
including, but not limited to, the guides against bait advertising
set forth in Part 238 (commencing with Section 238) of Title 16 of
the Code of Federal Regulations, as those regulations read on January
1, 1988.
   (p) Make any untrue or misleading statement indicating that a
vehicle is equipped with all the factory installed optional equipment
the manufacturer offers, including, but not limited to, a false
statement that a vehicle is "fully factory equipped."
   (q) Affix on any new vehicle a supplemental price sticker
containing a price that represents the dealer's asking price which
exceeds the manufacturer's suggested retail price unless all of the
following occur:
   (1) The supplemental sticker clearly and conspicuously discloses
in the largest print appearing on the sticker, other than the print
size used for the dealer's name, that the supplemental sticker price
is the dealer's asking price, or words of similar import, and that it
is not the manufacturer's suggested retail price.
   (2) The supplemental sticker clearly and conspicuously discloses
the manufacturer's suggested retail price.
   (3) The supplemental sticker lists each item which is not included
in the manufacturer's suggested retail price, and discloses the
additional price of each item.  If the supplemental sticker price is
greater than the sum of the manufacturer's suggested retail price and
the price of the items added by the dealer, then the supplemental
sticker price shall set forth that difference and describe it as
"added markup."
   (r) Advertise any underselling claim, such as "we have the lowest
prices" or "we will beat any dealer's price," unless the dealer has
conducted a recent survey showing that the dealer sells its vehicles
at lower prices than any other licensee in its trade area and
maintains records to adequately substantiate the claims.  The
substantiating records shall be made available to the department upon
request.
   (s) Advertise any incentive offered by the manufacturer or
distributor if the dealer is required to contribute to the cost of
the incentive as a condition of participating in the incentive
program, unless the dealer discloses in a clear and conspicuous
manner that dealer participation may affect consumer cost.
   For purposes of this subdivision, "incentive" means anything of
value offered to induce people to purchase a vehicle, including, but
not limited to, discounts, savings claims, rebates, below-market
finance rates, and free merchandise or services.
   (t) Display or offer for sale any used vehicle unless there is
affixed to the vehicle the Federal Trade Commission's Buyer's Guide
as required by Part 455 of Title 16 of the Code of Federal
Regulations.
   (u) Fail to disclose in writing to the franchisor of a new motor
vehicle dealer the name of the purchaser, date of sale, and the
vehicle identification number of each new motor vehicle sold of the
line-make of that franchisor, or intentionally submit to that
franchisor a false name for the purchaser or false date for the date
of sale.
   (v) Enter into a contract for the retail sale of a motor vehicle
unless the contract clearly and conspicuously discloses whether the
vehicle is being sold as a new vehicle or a used vehicle, as defined
in this code.
   (w) Use a simulated check, as defined in subdivision (a) of
Section 22433 of the Business and Professions Code, in an
advertisement for the sale or lease of a vehicle.
   (x) Fail to disclose, in a clear and conspicuous manner in at
least 10-point bold type on the face of any contract for the retail
sale of a new motor vehicle that this transaction is, or is not,
subject to a fee received by an autobroker from the selling new motor
vehicle dealer, and the name of the autobroker, if applicable.
   (y) This section shall become operative on July 1, 2001.
  SEC. 4.  Section 11713.1 of the Vehicle Code is amended to read:
   11713.1.  It is a violation of this code for the holder of any
dealer's license issued under this article to do any of the
following:
   (a) Advertise any specific vehicle for sale without identifying
the vehicle by either its vehicle identification number or license
number.
   (b) Advertise the total price of a vehicle without including all
costs to the purchaser at time of sale, except taxes, vehicle
registration fees, emission testing fees not exceeding fifty dollars
($50), actual fees charged for certificates pursuant to Section 44060
of the Health and Safety Code, finance charges, and any dealer
document preparation charge.  The dealer document preparation charge
shall not exceed forty-five dollars ($45).
   (c) (1) Exclude from an advertisement of a vehicle for sale that
there will be added to the advertised total price at the time of
sale, charges for sales tax, vehicle registration fees, the fee
charged by the                                              state for
the issuance of any certificate of compliance or noncompliance
pursuant to any statute, finance charges, and any dealer document
preparation charge.
   (2) For purposes of paragraph (1), "advertisement" means any
advertisement in a newspaper, magazine, direct mail publication, or
handbill that is two or more columns in width or one column in width
and more than seven inches in length, or on any web page of a dealer'
s web site that displays the price of a vehicle offered for sale on
the Internet, as that term is defined in paragraph (6) of subdivision
(e) of Section 17538 of the Business and Professions Code.
   (d) Represent the dealer document preparation charge or
certificate of compliance or noncompliance fee, as a governmental
fee.
   (e) Fail to sell a vehicle to any person at the advertised total
price, exclusive of taxes, vehicle registration fees, the fee charged
by the state for the issuance of any certificate of compliance or
noncompliance pursuant to any statute, finance charges, mobilehome
escrow fees, the amount of any city, county, or city and county
imposed fee or tax for a mobilehome, and any dealer document
preparation charge, which charges shall not exceed forty-five dollars
($45) for the document preparation charge and not to exceed fifty
dollars ($50) for emission testing plus the actual fees charged for
certificates pursuant to Section 44060 of the Health and Safety Code,
while the vehicle remains unsold, unless the advertisement states
the advertised total price is good only for a specified time and the
time has elapsed.
   (f) (1) Advertise for sale, sell, or purchase for resale any new
vehicle of a line-make for which the dealer does not hold a
franchise.
   (2) This subdivision does not apply to any transaction involving
any of the following:
   (A) A mobilehome.
   (B) A recreational vehicle as defined in Section 18010 of the
Health and Safety Code.
   (C) A commercial coach, as defined in Section 18001.8 of the
Health and Safety Code.
   (D) An off-highway motor vehicle subject to identification as
defined in Section 38012.
   (E) A manufactured home.
   (F) A new vehicle that will be substantially altered or modified
by a converter prior to resale.
   (G) A commercial vehicle with a gross vehicle weight rating of
more than 10,000 pounds.
   (H) A vehicle purchased for export and exported outside the
territorial limits of the United States without being registered with
the department.
   (g) Sell a park trailer, as specified in Section 18009.3 of the
Health and Safety Code, without disclosing in writing to the
purchaser that a park trailer is required to be moved by a
transporter or a licensed manufacturer or dealer under a permit
issued by the Department of Transportation or a local authority with
respect to highways under their respective jurisdictions.
   (h) Advertise free merchandise, gifts, or services provided by a
dealer contingent on the purchase of a vehicle.  The term "free"
includes merchandise or services offered for sale at a price less
than the seller's cost of the merchandise or services.
   (i) Advertise vehicles, and related goods or services, at a
specified dealer price, with the intent not to supply reasonably
expectable demand, unless the advertisement discloses the number of
vehicles in stock at the advertised price.  In addition, whether or
not there are sufficient vehicles in stock to supply a reasonably
expectable demand, when phrases such as "starting at," "from,"
"beginning as low as," or words of similar import are used in
reference to an advertised price, the advertisement shall disclose
the number of vehicles available at that advertised price.
   For purposes of this subdivision, in any newspaper advertisement
for a vehicle that is two model years old or newer, the actual phrase
that states the number of vehicles in stock at the advertised price
shall be (1) printed in a type size that is at least equal to
one-quarter of the type size, and in the same style and color of
type, used for the advertised price, however, in no case shall the
phrase be printed in less than 8-point type size, and (2) be
disclosed immediately above, below, or beside the advertised price
without any intervening words, pictures, marks, or symbols.
   The disclosure required by this subdivision is in addition to any
other disclosure required by this code or any regulation regarding
identifying vehicles advertised for sale.
   (j) Use the term "rebate" or similar words such as "cash back" in
advertising the sale of a vehicle unless the rebate is expressed in a
specific dollar amount and is in fact a rebate offered by the
vehicle manufacturer or distributor directly to the retail purchaser
of the vehicle or to the assignee of the retail purchaser.
   (k) Require a person to pay a higher price for a vehicle and
related goods or services for receiving advertised credit terms than
the cash price the same person would have to pay to purchase the same
vehicle and related goods or services.  For the purpose of this
subdivision, "cash price" has the meaning as defined in subdivision
(e) of Section 2981 of the Civil Code.
   (l) Advertise a guaranteed trade-in allowance unless the guarantee
is provided by the manufacturer or distributor.
   (m) Misrepresent the authority of a salesperson, representative,
or agent to negotiate the final terms of a transaction.
   (n) (1) Use the terms  "invoice," "dealer's invoice," "wholesale
price," or similar terms that refer to a dealer's cost for a vehicle
in an advertisement for the sale of a vehicle or advertise that the
selling price of a vehicle is above, below, or at either of the
following:
   (A) The manufacturer's or distributor's invoice price to a dealer.

   (B) A dealer's cost.
   (2) This subdivision does not apply to either of the following:
   (A) Any communication occurring during face-to-face negotiations
for the purchase of a specific vehicle if the prospective purchaser
initiates a discussion of the vehicle's invoice price or the dealer's
cost for that vehicle.
   (B) Any communication between a dealer and a prospective
commercial purchaser that is not disseminated to the general public.
For purposes of this subparagraph, a "commercial purchaser" means a
dealer, lessor, lessor-retailer, manufacturer, remanufacturer,
distributor, financial institution, governmental entity, or person
who purchases 10 or more vehicles during a year.
   (o) Violate any law prohibiting bait and switch advertising,
including, but not limited to, the guides against bait advertising
set forth in Part 238 (commencing with Section 238) of Title 16 of
the Code of Federal Regulations, as those regulations read on January
1, 1988.
   (p) Make any untrue or misleading statement indicating that a
vehicle is equipped with all the factory installed optional equipment
the manufacturer offers, including, but not limited to, a false
statement that a vehicle is "fully factory equipped."
   (q) Affix on any new vehicle a supplemental price sticker
containing a price that represents the dealer's asking price which
exceeds the manufacturer's suggested retail price unless all of the
following occur:
   (1) The supplemental sticker clearly and conspicuously discloses
in the largest print appearing on the sticker, other than the print
size used for the dealer's name, that the supplemental sticker price
is the dealer's asking price, or words of similar import, and that it
is not the manufacturer's suggested retail price.
   (2) The supplemental sticker clearly and conspicuously discloses
the manufacturer's suggested retail price.
   (3) The supplemental sticker lists each item which is not included
in the manufacturer's suggested retail price, and discloses the
additional price of each item.  If the supplemental sticker price is
greater than the sum of the manufacturer's suggested retail price and
the price of the items added by the dealer, then the supplemental
sticker price shall set forth that difference and describe it as
"added mark-up."
   (r) Advertise any underselling claim, such as "we have the lowest
prices" or "we will beat any dealer's price," unless the dealer has
conducted a recent survey showing that the dealer sells its vehicles
at lower prices than any other licensee in its trade area and
maintains records to adequately substantiate the claims.  The
substantiating records shall be made available to the department upon
request.
   (s) Advertise any incentive offered by the manufacturer or
distributor if the dealer is required to contribute to the cost of
the incentive as a condition of participating in the incentive
program, unless the dealer discloses in a clear and conspicuous
manner that dealer participation may affect consumer cost.
   For purposes of this subdivision, "incentive" means anything of
value offered to induce people to purchase a vehicle, including, but
not limited to, discounts, savings claims, rebates, below-market
finance rates, and free merchandise or services.
   (t) Display or offer for sale any used vehicle unless there is
affixed to the vehicle the Federal Trade Commission's Buyer's Guide
as required by Part 455 of Title 16 of the Code of Federal
Regulations.
   (u) Fail to disclose in writing to the franchisor of a new motor
vehicle dealer the name of the purchaser, date of sale, and the
vehicle identification number of each new motor vehicle sold of the
line-make of that franchisor, or intentionally submit to that
franchisor a false name for the purchaser or false date for the date
of sale.
   (v) Enter into a contract for the retail sale of a motor vehicle
unless the contract clearly and conspicuously discloses whether the
vehicle is being sold as a new vehicle or a used vehicle, as defined
in this code.
   (w) Use a simulated check, as defined in subdivision (a) of
Section 22433 of the Business and Professions Code, in an
advertisement for the sale or lease of a vehicle.
   (x) Fail to disclose, in a clear and conspicuous manner in at
least 10-point bold type on the face of any contract for the retail
sale of a new motor vehicle that this transaction is, or is not,
subject to a fee received by an autobroker from the selling new motor
vehicle dealer, and the name of the autobroker, if applicable.
   (y) This section shall become operative on July 1, 2001.
  SEC. 5.  Section 4 of this bill incorporates amendments to Section
11713.1 of the Vehicle Code proposed by both this bill and AB 1912.
It shall only become operative if (1) both bills are enacted and
become effective on or before January 1, 2001, (2) each bill amends
Section 11713.1 of the Vehicle Code, and (3) this bill is enacted
after AB 1912, in which case Section 11713.1 of the Vehicle Code, as
amended by AB 1912, shall remain operative only until July 1, 2001,
at which time Section 4 of this bill shall become operative, and
Section 3 of this bill shall not become operative.
  SEC. 6.  No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB of the California Constitution because the
only costs that may be incurred by a local agency or school district
will be incurred because this act creates a new crime or infraction,
eliminates a crime or infraction, or changes the penalty for a crime
or infraction, within the meaning of Section 17556 of the Government
Code, or changes the definition of a crime within the meaning of
Section 6 of Article XIIIB of the California Constitution.
